Schedule XI

Grant of permission to operate schedule air transport services

 [See sub-rule(1) and (1A) of rule 134]

 [The whole Schedule XI was inserted by G.S.R. No. 1087 dated 19-7-1965]

 1. Air Operator Certificate to operate Scheduled air transport services in pursuance of sub rule (1) and (1A) of rule 134 (hereinafter referred to as the Air Operator Certificate) may be granted either—

(i) to a citizen of India, or

(ii) to a company or a body corporate provided that—

(a) it is registered and has its principal place of business within India;

(b) the Chairman and at least two-thirds of its Directors are citizens of India; and

(c) its substantial ownership and effective control is vested in Indian nationals.

2. The Director-General shall be the authority to examine the applications for Air Operator Certificates and for issuing cancelling or suspending such Air Operator Certificates.

3. The Central Government may appoint two or more persons possessing specialised knowledge and experience of Civil Aviation to act as advisers to the Director-General to assist him in the performance of his functions under this Schedule.

4. The Central Government may appoint a Secretary and such other persons as may be considered necessary to assist the Director-General in the discharge of the duties conferred on him by the Schedule. The Secretary and all such persons shall be subordinate to and under the administrative control of the Director-General and form part of his establishment.

5. (1) Every application for a Air Operator Certificate shall be made to the Director-General not less than ninety days before the date on which it is desired to commence the service unless the Director-General has appointed a last date for the receipt of applications in which case the applications shall be made on or before that date or such later date as may be fixed by the Director-General.

(2) Every application shall be made in such form and contain such particulars as may be prescribed by the Director-General and shall be signed by the person applying for the Air Operator Certificate and, if made by any body corporate, shall be signed by a person duly authorised in that behalf by such body and shall be accompanied by such particulars as may be required for the purposes of this Schedule.

(3) A fee of rupees fifty thousand shall be payable for making an application under sub-paragraph (1).

(4) A fee of rupees twenty lakhs shall be payable for the issuance of an Air Operator Certificate and rupees ten lakhs shall be payable for renewal thereof.

(5) The fee shall be paid by Demand Draft drawn in favour of the Pay and Accounts Office, Director General of Civil Aviation, New Delhi.

6. The Director-General shall cause to be published in the Official Gazette, particulars regarding each application for a Air Operator Certificate and the date, not being less than thirty days after the date of publication, on which the application shall be taken into consideration.

 7. Any person may, not less than ten days before the date specified for the consideration of the application by the Director-General, make a representation to the Director-General in writing, setting out the specific grounds on which the representation is made. A copy of every such representation shall be sent by the person making it to the applicant for the Air Operator Certificate at the same time as it is sent to the Director-General and a certificate to that effect shall be attached to the representation. The Director-General may, at his discretion, give an opportunity to the person making the representation to state his views in the presence of the applicant for the Air Operator Certificate. The Director-General may, at his discretion, require any person making a representation under this paragraph to produce evidence in support of any statement he may make.

 8.(1) The Director-General shall consider the application for Air Operator Certificate and any representation made in respect thereof as speedily as possible and may, at his discretion, either refuse or grant the Air Operator Certificate for such period and subject to such conditions as may be specified in the Air Operator Certificate. The Director-General may, in his discretion, allow an opportunity to the applicant or his representative, for appearing before him in support of the application and may also give an opportunity to the person or persons making representations against the application to appear before him at the same or different times.

 (2) For the disposal of the application, the Director-General shall consider, in particular,

 (i) Whether having regard to the applicant’s experience and financial resources and his ability to provide satisfactory equipment, organisation and staffing arrangements, and having regard also to any contravention in respect of aircraft operated by him of the provisions of the Aircraft Act, 1934 (22 of 1934) and the rules made thereunder, the applicant is competent and a fit and proper person to operate aircraft on scheduled air transport services;

 (ii) the provisions made or proposed to be made against any liability in respect of loss or damage to persons or property which may be incurred in connection with the aircraft operated by the applicant;

 (iii) the existing or potential need or demand for the scheduled air transport service applied for;

 (iv) in the case of any scheduled air transport service proposed, the adequacy of any other air transport service already authorised under rule 134;

 (v) the extent to which any scheduled air transport service proposed would be likely to result in wasteful duplication of or in material diversion of traffic from any air transport service which is being or is about to be provided under a permission issued under rule 134;

 (vi) any capital or other expenditure reasonably incurred or any financial commitment or commercial agreement reasonably entered into, in connection with the operation of aircraft on air transport service by any person (including the applicant); and

 (vii) Omitted

(viii) any objections or representations made in accordance with the provisions of this schedule or any other law in force.

 (3) The Director-General may, at any time, require the applicant to furnish any information which the Director-General considers necessary for deciding the application. The Director-General may also require the applicant to produce evidence in support of any information that the applicant may have furnished.

 9. The Air Operator Certificate shall be valid for a period not exceeding five years as may be fixed by the Director-General at the time it is granted.

 10. The Air Operator certificate shall contain such information as prescribed by the Director-General.

 11. The grant of Air Operator Certificate shall not be construed as in any way absolving any person from the obligation of complying with the provisions of the Aircraft Act, 1934 (22 of 1934), the Carriage by Air Act, 1972 (69 of 1972) or with the rules made there under or with any other statutory provisions.

 12. Any schedule air transport service operated in accordance with this schedule shall comply with the safety requirements with respect to air routes, aircraft and aircrew specified by the Director General.

 13. Omitted

14. Omitted

15. (1) If the Director-General is satisfied that there is sufficient ground for doing so, he may, for reasons to be recorded in writing, cancel the Air Operator Certificate or suspend it for any specific period. He may also, during the investigation of any matter, suspend the Air Operator Certificate.

 (2) Without prejudice to the generality of the power in sub-paragraph (1), the Director-General may cancel or suspend the Air Operator Certificate for such period as he thinks fit, if he is satisfied—

 (a) that any of the conditions of the Air Operator Certificate has not been complied with and the failure is due to any wilful act or default on the part of the holder of the Air Operator Certificate or by any of his servants, or agents, irrespective of whether or not such willful act or default of the servant or agent was with the knowledge or approval of the holder of the Air Operator Certificate; or

(b) that the holder of the Air Operator Certificate has failed to establish a safe, efficient and reliable service; or

(c) that having regard to the financial resources of the holder of the Air Operator Certificate or the losses incurred by him, he cannot be relied upon to continue the operation of the service in a safe, efficient and reliable manner; or

(d) that such substantial changes have taken place in regard to the matters specified in sub-paragraph (2) of paragraph 8 as to render it necessary or expedient in the public interest or in the interest of safety to cancel or suspend the Air Operator Certificate; or

(e) that the Air Operator Certificate was obtained by fraud.

 (3) Before any action is taken under sub-paragraph (1) or sub-paragraph (2), the Director-General shall give to the holder of the Air Operator Certificate not less than fifteen days’ notice in writing specifying the ground or grounds upon which it is proposed to cancel or, as the case may be, suspend the Air Operator Certificate and shall give him an opportunity of showing cause either in writing or by appearing in person before the Director-General against the action proposed to be taken.

 (4) Notwithstanding anything contained in sub-paragraph (3), the Director-General, may, if he has reason to believe on reliable information that it is expedient in the interest of public safety so to do, summarily suspend the Air Operator Certificate with a view to make further enquiry and take action.

 (5) The Air Operator Certificate shall cease to be in force from the date of such cancellation or suspension unless otherwise directed.

16. The Director-General may, at any time, whether of his own motion or on application made by any party, correct clerical or typographical error in any of his orders arising from any accidental slip or omission.

17. Omitted

18. Any Air Operator Certificate granted under this Schedule shall not be capable of being transferred or assigned except with the specific permission of the Director-General :

 Provided that in the event of death, or bankruptcy of the holder of the Air Operator Certificate or of the appointment of a receiver, manager or trustee, in relation to the business of the holder, the person for the time being carrying on that business shall, if he makes an application within 14 days of the said event to the Director-General for a new Air Operator Certificate, be entitled to continue the operation of the scheduled air transport service until the application is disposed of, or unless the Director-General has directed otherwise in the interest of public convenience.

19. Omitted

20. (1) The Air Operator Certificate shall be kept at the principal office of the holder thereof and shall be produced for inspection on demand by any Magistrate, any Police Officer not below the rank of a Deputy Superintendent of Police, any officer of customs, any Gazetted officer of the Directorate General of Civil Aviation, or any other person authorised by the Central Government or the Director-General by special or general order in writing in this behalf.

 (2) A copy of the Air Operator Certificate shall be displayed at a conspicuous place in the principal traffic office of the holder of the Air Operator Certificate.

 (3) On the expiration of an Air Operator Certificate, whether by efflux of time or in consequence of a decision of the Director-General under this Schedule or when a Air Operator Certificate is suspended by the Director-General, the holder shall surrender the Air Operator Certificate to the Director-General for cancellation or endorsement as the case may be.

 21. The holder of an Air Operator Certificate shall perform such services for conveyance of mail or any other items as specified by the Director General.

 22. Every person to whom an Air Operator Certificate has been granted under this Schedule shall submit to the Director-General in such form as may be prescribed by him:—

 (a) monthly returns regarding the operation of the permitted air transport service and other air transport operations so as to reach the Director-General not later than 45 days after the expiry of the month to which the return relates;

(b) annual return showing the financial results of the services or operations during each calendar year so as to reach the Director-General not later than three months after the expiry of the year to which the return relates; and

(c) such other statements or returns as may be required by the Director-General.

 23. Any applicant or a holder of an Air Operator Certificate, aggrieved by an order of the Director-General rejecting the application, cancelling or suspending such Air Operator Certificate, as the case may be, may, within a period of thirty days from the date of such order, prefer an appeal to the Central Government and the decision of the Central Government on such appeal shall be final.

 [Amended by (i) G.S.R. No. 412 dated 15-5-3-1971,
(ii) G.S.R. No. 117(E) dated 25-2-1994,
(iii) GSR 413 dated 23-7-2001 ,
(iv) GSR No. 181(E) dated 20-03-2006,
(iv) GSR No. 813 dated 21-11-2008,
(v) GSR No. 101(E) dated 19-02-2009, and

(vi)
GSR No. 32(E) dated 13-01-2015]